In 2002 the following countries began to use the Euro as their currency; Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain. Countries that currently do not use the Euro are Britain, the Czech Republic, Denmark, Poland, Sweden, Switzerland, and the Eastern European Countries.

Today the Euro and the U.S. dollar are very similar in value. This simplifies understanding prices in Europe for the American traveler. The toughest question now is, "Should I use cash, travelers cheques, ATM or credit cards?"

Cash is of course the most commonly accepted form of payment in Europe. The only disadvantage to cash remains the possibility of theft. If you decide to bring large amounts of cash, use common sense. Only carry one day's worth of cash in your pocket or wallet so that if you lose it, or are the target of a rare pick pocketing, you will only lose a small amount. The rest should be in a safe at your hotel or in a money belt. Never be seen digging around in your money belt in public - it's an open invitation for trouble. Traveler's cheques were the smart move for many years, but have become less common in the day of cash machines and credit cards. The largest advantage to

Traveler's cheques is that if they are lost or stolen they can be replaced. The largest disadvantages are that you can waste a lot of time trying to find a bank to cash them, or you settle for an unfavorable exchange rate when using them in a restaurant or shop.

ATM machines are very common in Europe, easy to use, and will almost always have the option for English. Before you leave home, check with your bank to make sure that your P.I.N. code will work in Europe, and find out any limit on what you can withdraw each day. (Most European machines will only accept a four-digit P.I.N. code.)

Credit cards are widely accepted in Europe and very convenient to use, though smaller shops and restaurants may discourage their use or refuse to accept them at all. The largest advantage to using them is that you usually get the best exchange rate possible, but check with your card issuing bank before you go: some companies charge an additional "hidden" fee for currency conversion.

On trips taken with Travels with Friends, we recommend that you plan on spending $50-$75 U.S. dollars per person, per day while in Europe. This will cover a reasonable lunch, dinner, entrances to sights not included in the trip, and small souvenirs. If you enjoy extravagant meals, plan to buy a lot of souvenirs, or expensive goods, then adjust your plan accordingly.

TIP: Never put all your eggs in one basket. Take a credit card with you even if you don't plan to use it. Take some Euro cash to get you through at least your first day or two. Don't rely solely on your ATM because cards have been known to demagnetize and become useless.

TIP: We prefer to get local currency (Euros) before we go. We usually bring with us all of the spending money that we will need for the duration of the trip. We don't like to rely on a bank being open or a restaurant taking a card. It can also be a way to save money.

EXAMPLE: Some small hotels offer a discount if you pay in cash, rather than by credit card. When you buy currency in advance, make sure you get it from a source that will buy back whatever you don't use. Thomas Cook uses this policy. TIP: Whatever form of money you take, make a daily budget and stick to it.

TIP: Call your credit card company before you leave to let them know when and where you will be traveling. Ask about your available credit and any transaction limits. In some countries it is a crime if your card is denied because you have gone over your limit.

TIP: Consider not carrying a wallet on your trip. Most banks can give you free sleeves for your bank card / credit card / license. Use one or two of these and keep these items in your front pant pocket or in a security pouch inside your pants.

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